USHO, Longtimer1 on RB knows something is up. He just signed on Friday.
Check out his latest post.
ragingbull.com
By: Longtimer1
Reply To: 4549 by netfan
Saturday, 29 Jan 2000 at 6:11 PM EST
Post # of 4581
USHO TURNAROUND ALMOST COMPLETE
In the 4th QTR of 1996, USHO undertook a series of steps to improve their operating results, restore financial
health, and focus on building its core home nursing business. They hired a team of experienced turnaround
specialists to improve the operating and financial performance of the company. Lets look at what has
happened to their bottom line since:
For fiscal 1996, (the year prior to their turnaround attempt) USHO lost 2.76/share based on revenues of 55.1
Mil
That year, USHO share prices ranged from .50 - 2.62 each.
For fiscal year 1997, (the first year of their turnaround attempt) USHO lost .22/share based on revenue of 52.6
Mil. That's more than a 10 fold turnaround, but still a loss. In 1997, USHO share prices ranged from .68 - 1.53
each.
Fiscal year 1998 was rough on USHO due to the industry wide Medicade investigation. USHO spent alot of
money working with regulators and eventually settled their portion of the investigation for 1.75 Mil. Taking that
into consideration one might expect their turnaround attempt to be slightly derailed. It was. For fiscal year
1998, USHO lost .37/share based on revenue of 47.8 Mil. In 1998, USHO share prices ranged from .01 - .94
each.
That brings us to fiscal year 1999. What have they been up to?
1. At the beginning of last year, USHO initiated further cost reduction measures that were projected to save
the company 1.3 Mil. on an annual basis.
2. Going into last year, USHO obtained several significant new customers (New York Health and Hospital
Corporation, Catholic Medical Centers, Coram, and Merit Behavioral).
3. Last year there were Medicare rate increases in all of USHO's certified locations.
Through the first 9 months of 1999, USHO has lost .03/share on revenue of 34.7 Mil.
What does all of this mean?? Last year, USHO was in the process of having its best year since 1992!! A
profitable 4th QTR is a real possibility. A 4th QTR profit of just .04/share will give USHO a profit for the
overall fiscal year. USHO's turnaround is not that far from being complete. The 4th QTR report due out Feb
15th will tell all. If the 4th QTR is profitable, look out, the share price won't stay where it's currently at very
long ! |
